1074 Crenshaw --

Cottonwood, AZ 86326

$199,900D-

2 bd · 2.0 ba · 1,500 sqft · Built 2022 · Manufactured · Active · 6 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,418/mo
• Mortgage (P&I): −$1,048
• Tax + insurance: −$333
• HOA: −$0
• Vac / Maint / Mgmt: −$298
• Net cashflow: $-262/mo
• Annual: $-3,138/yr
• Cap rate: 4.72%
• Cash-on-cash: -5.61%
• DSCR: 0.75
• 1% rule: 0.71%
• Cash to close: $55,972

Investor read

• This is a 2-bed/2.0-bath manufactured listed at $200k. Condition is rated good.
• At list price, monthly cash flow is $-262 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $162k (18.9% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $142k (29.1% below list).
• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $142k (29.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#7 in AZ, #2,176 nationally) — a middle-class / working-renter tenant base. Strengths: health & safety A+, commute A, cost of living A; Watch: employment D, amenities F.
• Cottonwood-Oak Creek Elementary District (4487) (town): math 17% / reading 28% proficiency, ranked #174 of 249 in AZ (top 70%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Cottonwood Community School (math 8% / reading 13%, grade F, #993 of 1,109 statewide, top 91%, 500 students, 75% FRL); Mingus Union High School (math 22% / reading 27%, grade F, #154 of 381 statewide, top 53%, 1,226 students, 46% FRL).
• Market conditions: Rents soft (-0.2%/yr); 428 active listings in the ZIP; 18 comparable units currently listed for rent nearby; rentals at typical pace (median 19d on market — plan ~3-4 weeks tenant-placement turnaround); 44% of comp listings sitting > 30 days — soft ceiling on asking rent; 2,062 units permitted in Yavapai County in 2024 (98 in 5+ unit buildings).
• Yavapai County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• Current owner paid $145k; 38% above their basis — modest negotiation headroom, anchor on the comps not their cost.
• Cap rate 4.7% vs local median 3.8% in Cottonwood — meaningfully above typical; check what's discounted (condition, days-on-market, listing class) to confirm the premium yield is real.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.